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Sheet1 Page 1 SANITATION REVENUES BACKGROUND: The Sanitation Department is responsible for the collection and disposal of refuse within the city limits. Revenues are collected from the following services: Residential Commercial containerized Commercial bulk Special Pick up Commercial collections are divided into containers, (dumpsters) and bulk. The latter refers to bulk trash removal mainly in the downtown area. Trash service rates for bulk customers is based upon cubic yards. Pick up is two days per week. Commercial container service charges are based upon the size of the container, frequency of pick up, and rental charges for the containers. The city contracts out approximately 50% of its customers out private haulers. However, the city maintains control over the monthly billings through the Utility Accounting Division. SCOPE: The scope of the review will be for last fiscal year for testing and the last day of field work for the evaluation of internal control. The audit will focus on both the collection and control of residential and commercial revenues. PLANNING: 1. Prepare and send an entrance letter to the Sanitation Director and the Finance Director ( Utility Accounting is under the Finance Director). 2. Prepare a planning program and budget for the preliminary work and obtain the approval of your team leader. 3. Review past internal audit reports and external auditor's comments. 4. Review budget documents for the Sanitation Department and their Service Level Summary for the current fiscal year. 5. Schedule an entrance conference with the Sanitation Director in order to discuss the upcoming audit.
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Sheet1 Page 2 6. Hold the entrance conference and obtain the name of the department contact person. Also secure a place from which to conduct the audit field work. 7. Conduct the preliminary survey of the Sanitation Department and the Utility Accounting Division by gathering information through interviewing the appropriate operating personnel. 8. Flowchart the main paper flow of the Sanitation Department and the Utility Accounting Division. Identify major control points and schedule the strengths and weaknesses of the system. Also list compensating controls, if any. 9.
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